SummaryIn the UK in 2014, contactless payments took place at the rate of 10 a second and rose in value by £219m since 2013. Retailers across Europe are increasingly beginning to offer mobile payments as they look to benefit from faster payment transactions. Unmanned sites, car washes, fuel cards and retailer loyalty schemes can all benefit from the introduction of mobile payments at the forecourt

Key Findings- Plan future strategies by examining the benefits and potential barriers to the adoption of mobile payments at the forecourt.

- Identify future mobile payment trends and how you can take advantage of them

- Examine how other retailers use mobile payments at the forecourt and benchmark them against your current offerings.

- Analyse current motorist mobile payment spend and frequency to correctly set payment limits at the forecourt.

SynopsisOnly 13.3% of motorists across Europe use mobile payments at the forecourt, due to the lack of service stations accepting this payment type. With motorists also being limited to a maximum spend of around £20 (dependent on local currency) per transaction, many are unable to use mobile payment methods, even if they have set them up.

Italy has the highest spend on mobile payments per transaction across the top five European countries at €26.79 due to the number of smaller vehicles and scooters in the national parc, that have smaller tanks making their refuel cost eligible as it comes under the transaction limit.

European motorists who use mobile payments do so twice a month on average. With the maximum spend using mobile payments being so low, many motorists will only be able to use this payment type if they are not refuelling their tank fully or visiting the shop for food and drink items, limiting its use at the forecourt.

Reasons To Buy- What are the current trends in mobile payments at the forecourt? And how can retailers take advantage of them?

- How much does the average motorist spend per mobile payment at the forecourt and how often do they currently use it?

- What are the benefits for fuel retailers of implementing mobile payment methods at the forecourt?

- What are the barriers to mobile payment uptake at the forecourt and what are the solutions to these issues?

- How will future mobile payment trends affect the market and how can fuel retailers take advantage of them?

Table Of Contents

Mobile Payments at the Service Station| Verdict Trend ReportTable of Contents1 Overview2 Summary2.1 Smartphone ownership to rise and drive increase in mobile payments2.2 Retailers increasingly accept mobile payments2.3 Mobile payments bring advantages to the forecourt2.4 Increase to pay limit will have little effect on mobile payments at the forecourt2.5 Security concerns one of the main barriers to mobile payment uptake2.6 Difficulty in changing payment habits is a barrier to mobile payments3 Types of Mobile Payments3.1 Remote payments3.2 Proximity payments3.2.1 Contactless payments3.2.2 Mobile wallets4 Current Mobile Payment Trends4.1 Growing smartphone usage4.1.1 Increased number of smartphones across the globe will facilitate mobile payments4.1.2 Current smartphone users will also increase mobile payment usage4.1.3 More phones being sold with built-in NFC4.2 Apple Pay is changing the landscape of mobile payments4.2.1 Apple Pay making mobile payments even easier for clients4.2.2 Apple Pay appeals to businesses through international coverage and no spending limit4.3 Retailers investing in mobile payments4.3.1 Increase in the number of retailers accepting mobile payments4.3.2 Pump manufacturer Tokheim has begun offering mobile payments4.4 Rising pay limit4.4.1 UK contactless pay limit to rise to Â£30 in September 20155 Applications of Mobile Technology5.1 Unmanned service stations5.1.1 Mobile payments will facilitate the opening of unmanned sites5.1.2 Cut down investment costs through mobile payments5.1.3 Allay motorist security concerns through mobile payments5.2 Car wash5.2.1 Car wash facilities help retailers to remain competitive5.2.2 Lack of on hand staff could lead to technical problems5.3 Fuel cards5.3.1 Mobile payments help fleets' time-efficiency5.3.2 Mobile payments more secure than some fuel cards5.3.3 Mobile payments reduce transaction costs for retailers5.3.4 Targeting drivers through mobile payments will boost fuel card volumes5.4 Loyalty cards and scheme participation5.4.1 Loyalty schemes increasingly used to entice motorists5.4.2 Mobile payments increase the likeliness of repeat business5.4.3 Mobile payments solve limited wallet space issues5.4.4 Motorists will be able to take part in more loyalty schemes5.4.5 Potential for motorists to forget about loyalty schemes5.5 Targeted loyalty schemes5.5.1 Mobile payments provide purchase behaviour information5.5.2 Time-sensitive advertisements allow for specific targeting5.5.3 Weather-specific offers used to increase sales at the forecourt6 Current Mobile Payment Usages6.1 Shell creating a payment app with PayPal6.1.1 Shell creates mobile payment app6.1.2 Shell can build loyalty through its payment app6.1.3 Maximum spend limit could stall uptake of the Shell app6.1.4 Mobile payment app restricts sale of food and drink6.1.5 Easy to operate app crucial to motorist uptake6.1.6 Mobile payments provide distinct advantage for fuel cards6.2 PKN Orlen in Germany and Carrefour in France introduce contactless payments6.2.1 Contactless payments make it easy to adjust payment habits6.2.2 Older generation will struggle to adapt to new technology6.2.3 Food and drink sales maintained through placing of contactless terminal6.2.4 Marketing the benefits of contactless key to habit changes6.2.5 Low maximum spend hinders contactless uptake6.2.6 Fuel card clients can make easy transition to contactless6.3 LUKOIL accepts SpectroCoin mobile wallet that can use bitcoins6.3.1 LUKOIL receives local currency not bitcoins6.3.2 bitcoin future unstable6.3.3 Lack of sites accepting bitcoins will halt payment uptake7 Barriers to B2C Uptake of Mobile Payments7.1 Current pay limits make it difficult to use at the forecourt7.1.1 Low maximum spend limits mobile payments in majority of European markets7.1.2 Payment limits to become obsolete over coming years7.1.3 Mobile payment spend limits restrict use to non-fuel forecourt items7.2 Technological issues7.2.1 Technological issues can discourage motorists from using new payment types7.2.2 Mobile payments allow the opening of more unmanned stations7.2.3 Easy to follow interface key to uptake7.2.4 Older motorists may struggle with new technology7.3 Breaking payment habits7.3.1 Changing payment habits key to uptake7.3.2 Lack of places to use mobile payments8 Barriers to B2B Uptake of Mobile Payments8.1 Fleets would have to invest in NFC-enabled smartphones8.1.1 Mobile payments require investment in smartphones8.1.2 High replacement costs8.1.3 Security levels not high enough to warrant switch8.1.4 Faster payment times provide limited commercial benefits8.2 Lack of third-party coverage8.2.1 Lack of third-party coverage across Europe8.2.2 Using two payment types is impractical for commercial drivers8.3 No Europe-wide coverage8.3.1 Domestic-only app makes it impractical for commercial use8.3.2 Apple Pay provides global coverage9 Future Mobile Payment Trends9.1 Simplified payment systems9.1.1 Motorists will need faster payment9.1.2 Automatically linking app and phone will bring advantages9.2 Biometric scanning significantly increases security9.2.1 Biometric smartphone technology will make payments more secure9.2.2 Biometric will be the ultimate tool in fraud prevention9.2.3 Biometrics will allow for payment limits to rise significantly9.3 Europe-wide coverage9.3.1 Creating European partners will bring in commercial clients9.3.2 Multiple purpose payment apps will be more attractive to motorists10 Consumer Payment Trends10.1 Mobile payment usage10.1.1 Over 80% of motorists across Europe do not use mobile payments10.2 Mobile payment usage frequency10.2.1 Over 20% of motorists using mobile payments use it twice a month when visiting the forecourt10.3 Mobile payment average spend10.3.1 Turkey spends the most on mobile payments across Europe per visit10.3.2 Of the top five markets in Europe, Italy spends the most per mobile payment transaction10.3.3 On average, motorists' mobile payment spend at the forecourt is â¬20.1811 Methodology11.1 Stage one: primary research11.1.1 Verdict Motorist Survey11.1.2 Interviews11.2 Stage two: secondary research11.3 Stage three: data modelling11.4 Stage four: data finalisation12 Appendix12.1 About Verdict Retail12.2 Disclaimer

List of TablesTable 1: Average fuel spend per visit to the forecourt by country (â¬), 2014Table 2:Proportion of motorists that have used mobile payments by country (%), 2014Table 3: Frequency of mobile payment usage per month by country (%), 2014Table 4: Average motorist mobile payment value per visit by country (â¬), 2014

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